Silvercorp Metals, Inc. (NYSE:SVM) is among the 11 Best Silver Mining Stocks to Buy According to Hedge Funds. Silvercorp Metals, Inc. (NYSE:SVM) analyst Joe Reagor of Roth Capital increased the firm’s price target from $6.25 to $6.75 on July 1 and maintained a Buy recommendation on the shares. The analyst tells investors in a research note that the company is upgrading its model on miners after increasing its projected gold pricing. The average gold price per ounce is estimated to be $3,294 for Q2, $3,300 ...

社会责任方面，公司构建了专业应急与防控体系，全年开展59次应急演练，未发生污染事故，百万工时 损失事件率(LTIR)同比下降43.48%。公司推行公平薪酬与多元化管理，注重女性职业发展;社会公益捐 赠超900万元，提供近3600个就业岗位。 智通财经APP获悉，近日，希尔威金属矿业(SVM.US)正式发布2025财年可持续发展报告，系统披露了 公司在环境、社会及治理(ESG)领域的实践与成效。报告显示，希尔威在国际ESG评级中表现卓越，获 得明晟MSCI ESG评级A级、晨星Sustainalytics ESG风险评分22.6、标普全球企业可持续发展评估(CSA) 评分58分(超越全球91%同业)。 环境保护方面，希尔威金属矿业坚持合规与创新并重，在中国的所有矿山均通过ISO 14001认证。公司 严格管理尾矿库，采用HDPE防渗膜等先进技术实现杜绝环境污染。2025财年，淡水取水强度下降近 30%，选厂生产用水循环利用率达83.84%，并全面淘汰煤炭，推广光伏发电，温室气体排放强度较2020 财年下降17.15%。 公司治理方面，公司建立了董事会级的三级垂直治理体系，联合顶尖高校推动技术创新与数字化，并通 ...

Core Insights - Silvercorp Metals Inc. published its annual Sustainability Report for Fiscal 2025, highlighting its commitments and performance in environmental, social, and governance (ESG) aspects [1][2]. Group 1: Sustainability Report Highlights - The report emphasizes progress in five strategic pillars: governance effectiveness, ecological protection, climate resilience, operational safety, and shared community prosperity [2]. - Key achievements include an investment of $1.3 million in local community initiatives, a 115% increase in employee training hours to over 68,000, and a 44% reduction in the Lost Time Incident Rate (LTIR) to 0.52 [7]. - The company reported a 17% reduction in Scope 1 & 2 greenhouse gas emissions from the 2020 baseline and zero significant environmental incidents [7]. Group 2: Reporting Frameworks - The Sustainability Report was prepared in accordance with several frameworks, including the Global Reporting Initiative (GRI) Standards, United Nations Sustainable Development Goals (SDGs), and the Task Force on Climate-Related Financial Disclosures (TCFD) [3]. Group 3: Company Overview - Silvercorp is a Canadian mining company focused on producing silver, gold, lead, and zinc, with a strategy aimed at generating free cash flow, organic growth through exploration, and a commitment to responsible mining and ESG practices [5].

Core Viewpoint - Silvercorp Metals Inc. has filed a base shelf prospectus allowing it to offer up to US$400 million in various securities over a 25-month period, although there is no current intention to do so [2][3]. Group 1: Filing Details - The base shelf prospectus was filed with securities commissions across Canada and a corresponding registration statement was filed with the SEC in the United States [1]. - The company qualifies to offer common shares, preferred shares, debt securities, subscription receipts, units, and warrants, or any combination thereof [2]. Group 2: Offering Conditions - Securities may be offered separately or together, with amounts, prices, and terms determined based on market conditions at the time of sale [3]. - Specific terms of any offering will be detailed in a shelf prospectus supplement to be filed with relevant securities regulatory authorities [3]. Group 3: Company Overview - Silvercorp is a Canadian mining company focused on producing silver, gold, lead, and zinc, with a strategy aimed at generating shareholder value through free cash flow, organic growth, mergers and acquisitions, and a commitment to responsible mining and ESG [6].

Core Viewpoint - Silver Mountain Mines (SVM) experienced a 2.02% increase in stock price, reaching $4.489 per share, with a total market capitalization of $981 million as of August 21 [1] Financial Performance - As of June 30, 2025, Silver Mountain Mines reported total revenue of $81.334 million, reflecting a year-over-year growth of 12.71% [1] - The company's net profit attributable to shareholders was $18.126 million, which represents a year-over-year decrease of 17.38% [1] Company Overview - Silver Mountain Mines is a low-cost silver production company based in Canada, with multiple mining operations in China [1] - The company's vision is to create value for shareholders by acquiring projects with resource potential and development opportunities [1]

Core Viewpoint - Hilltop Metal Mining (SVM) has shown significant financial growth, with a notable increase in revenue and net profit, indicating strong operational performance and potential for shareholder value creation [1] Financial Performance - As of March 31, 2025, Hilltop Metal Mining reported total revenue of $299 million, representing a year-over-year growth of 38.9% [1] - The company's net profit attributable to shareholders reached $58.19 million, reflecting a year-over-year increase of 60.28% [1] Company Overview - Hilltop Metal Mining is a low-cost silver producer based in Canada, with multiple mining operations in China [1] - The company's vision focuses on acquiring projects with resource potential and development opportunities to create value for shareholders [1]

Core Viewpoint - Hilltop Metal Mining (SVM) has shown a significant increase in stock price and financial performance, indicating strong growth potential in the silver mining sector [1] Financial Performance - As of March 31, 2025, Hilltop Metal Mining reported total revenue of $299 million, representing a year-over-year increase of 38.9% [1] - The company's net profit attributable to shareholders reached $58.19 million, reflecting a year-over-year growth of 60.28% [1] Company Overview - Hilltop Metal Mining is a low-cost silver producer based in Canada, with multiple mining operations in China [1] - The company's vision focuses on creating shareholder value through the acquisition of projects with resource potential and development opportunities [1]

Core Insights - Silver Valley Metals (SVM) experienced a 2.02% increase in stock price, reaching $4.519 per share with a trading volume of $6.1282 million and a total market capitalization of $988 million [1] Financial Performance - As of March 31, 2025, Silver Valley Metals reported total revenue of $299 million, representing a year-over-year growth of 38.9% [1] - The company's net profit attributable to shareholders was $58.19 million, showing a significant increase of 60.28% compared to the previous year [1] Company Overview - Silver Valley Metals is a low-cost silver producer based in Canada, with multiple mining operations in China [1] - The company's vision focuses on creating shareholder value through the acquisition of projects with resource potential and development opportunities [1]

[Condensed Consolidated Interim Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) This section presents the company's unaudited condensed consolidated interim financial statements [Condensed Consolidated Interim Statements of Income](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Income) For the three months ended June 30, 2025, Silvercorp Metals Inc. reported an increase in revenue but a decrease in net income and basic earnings per share compared to the same period in 2024 Condensed Consolidated Interim Statements of Income (USD thousands) | Metric | Three Months Ended June 30, 2025 (USD thousands) | Three Months Ended June 30, 2024 (USD thousands) | | :-------------------------------- | :------------------------------------------------ | :------------------------------------------------ | | Revenue | **81,334** | **72,165** | | Cost of mine operations | **45,511** | **35,651** | | Income from mine operations | **35,823** | **36,514** | | Net income | **24,348** | **28,129** | | Basic earnings per share | **0.083** | **0.120** | | Diluted earnings per share | **0.082** | **0.120** | - Revenue increased by **$9.169 million (12.7%)** from **$72.165 million** in 2024 to **$81.334 million** in 2025[2](index=2&type=chunk) - Net income decreased by **$3.781 million (13.4%)** from **$28.129 million** in 2024 to **$24.348 million** in 2025[2](index=2&type=chunk) - Basic earnings per share decreased from **$0.120** in 2024 to **$0.083** in 2025[2](index=2&type=chunk) [Condensed Consolidated Interim Statements of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Comprehensive%20Income) The company reported a significant increase in total comprehensive income for the three months ended June 30, 2025, primarily driven by a positive currency translation adjustment and a gain in fair value on equity investments, contrasting with losses in the prior year Condensed Consolidated Interim Statements of Comprehensive Income (USD thousands) | Metric | Three Months Ended June 30, 2025 (USD thousands) | Three Months Ended June 30, 2024 (USD thousands) | | :------------------------------------------------ | :------------------------------------------------ | :------------------------------------------------ | | Net income | **24,348** | **28,129** | | Currency translation adjustment | **6,175** | (**4,228**) | | Share of other comprehensive income (loss) in associates | **472** | (**145**) | | Change in fair value on equity investments designated as FVTOCI | **756** | (**22**) | | Other comprehensive income (loss), net of taxes | **7,403** | (**4,395**) | | Total comprehensive income | **31,751** | **23,734** | - Total comprehensive income increased by **$8.017 million (33.8%)** from **$23.734 million** in 2024 to **$31.751 million** in 2025[3](index=3&type=chunk) - Currency translation adjustment shifted from a loss of **$4.228 million** in 2024 to a gain of **$6.175 million** in 2025[3](index=3&type=chunk) [Condensed Consolidated Interim Statements of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Financial%20Position) As of June 30, 2025, the company's total assets increased, primarily driven by higher cash and cash equivalents, other investments, and mineral rights and properties Condensed Consolidated Interim Statements of Financial Position (USD thousands) | Metric | June 30, 2025 (USD thousands) | March 31, 2025 (USD thousands) | | :-------------------------------- | :------------------------------ | :----------------------------- | | Total Assets | **1,178,185** | **1,138,941** | | Cash and cash equivalents | **376,112** | **363,978** | | Other investments | **24,483** | **17,277** | | Mineral rights and properties | **606,676** | **586,982** | | Total Liabilities | **320,947** | **305,553** | | Long-term portion of convertible notes | **109,892** | **108,193** | | Derivative liabilities | **55,625** | **50,768** | | Total Equity | **857,238** | **833,388** | - Total assets increased by **$39.244 million (3.4%)** from March 31, 2025, to June 30, 2025[4](index=4&type=chunk) - Cash and cash equivalents increased by **$12.134 million (3.3%)** from March 31, 2025, to June 30, 2025[4](index=4&type=chunk) - Total liabilities increased by **$15.394 million (5.0%)** from March 31, 2025, to June 30, 2025[4](index=4&type=chunk) [Condensed Consolidated Interim Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) For the three months ended June 30, 2025, the company experienced a significant increase in net cash provided by operating activities, while net cash used in investing activities decreased Condensed Consolidated Interim Statements of Cash Flows (USD thousands) | Metric | Three Months Ended June 30, 2025 (USD thousands) | Three Months Ended June 30, 2024 (USD thousands) | | :------------------------------------ | :------------------------------------------------ | :------------------------------------------------ | | Net cash provided by operating activities | **48,281** | **39,955** | | Net cash (used in) provided by investing activities | (**24,554**) | (**40,709**) | | Net cash used in financing activities | (**13,118**) | (**5,868**) | | Increase in cash and cash equivalents | **12,134** | (**8,528**) | | Cash and cash equivalents, end of the period | **376,112** | **144,414** | - Net cash provided by operating activities increased by **$8.326 million (20.8%)** year-over-year[5](index=5&type=chunk) - Net cash used in investing activities decreased by **$16.155 million**, indicating less cash outflow compared to the prior year[5](index=5&type=chunk) - Net cash used in financing activities more than doubled, increasing by **$7.250 million**, primarily due to interest paid on convertible notes and higher non-controlling interest distributions[5](index=5&type=chunk) [Condensed Consolidated Interim Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Equity) The company's total equity increased significantly from March 31, 2025, to June 30, 2025, driven by comprehensive income, share-based compensation, and the exercise of options, partially offset by dividends and distributions to non-controlling interests Condensed Consolidated Interim Statements of Changes in Equity (USD thousands) | Metric | As at June 30, 2025 (USD thousands) | As at March 31, 2025 (USD thousands) | | :------------------------------------------ | :---------------------------------- | :--------------------------------- | | Share capital | **413,924** | **411,960** | | Equity reserves | (**8,950**) | (**15,140**) | | Retained earnings | **321,044** | **305,908** | | Total equity attributable to equity holders | **726,018** | **702,728** | | Non-controlling interests | **131,220** | **130,660** | | Total Equity | **857,238** | **833,388** | - Total equity increased by **$23.850 million** from March 31, 2025, to June 30, 2025[7](index=7&type=chunk) - Share capital increased by **$1.964 million**, primarily due to options exercised[7](index=7&type=chunk)[6](index=6&type=chunk) - Retained earnings increased by **$15.136 million**, reflecting net income less dividends declared[7](index=7&type=chunk)[6](index=6&type=chunk) [Notes to Condensed Consolidated Interim Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the interim financial statements, covering accounting policies, segment data, and financial instruments [1. CORPORATE INFORMATION](index=8&type=section&id=1.%20CORPORATE%20INFORMATION) Silvercorp Metals Inc. is a Canadian-incorporated, publicly listed mining company with producing mines in China and exploration/development projects in China and Ecuador - The Company is engaged in the acquisition, exploration, development, and mining of mineral properties[8](index=8&type=chunk) - Producing mines are located in China, and current exploration and development projects are in China and Ecuador[8](index=8&type=chunk) - On July 31, 2024, the Company acquired a **75%** interest in the El Domo project and a **98.7%** interest in the Condor project through the acquisition of Adventus Mining Corporation, diversifying assets and expanding into Latin America[9](index=9&type=chunk) [2. MATERIAL ACCOUNTING POLICIES](index=8&type=section&id=2.%20MATERIAL%20ACCOUNTING%20POLICIES) The condensed consolidated interim financial statements are prepared in accordance with IAS 34. The company adopted amendments to IAS 21 (Lack of Exchangeability) effective April 1, 2025, with no material impact, and is currently evaluating the impact of new standards like IFRS 18 and amendments to IFRS 9 and IFRS 7, which are effective in future periods - These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standards **34** - Interim Financial Reporting ('IAS **34**') of the IFRS® Accounting Standards[11](index=11&type=chunk) - The Company adopted amendments to IAS **21** (Lack of Exchangeability) effective April 1, 2025, which did not have a material impact[13](index=13&type=chunk)[14](index=14&type=chunk) - The Company is currently evaluating the impact of IFRS **18** (effective January 1, 2027) and amendments to IFRS **9** and IFRS **7** (effective January 1, 2026) on its financial statements[18](index=18&type=chunk)[19](index=19&type=chunk) [2.a Statement of Compliance](index=8&type=section&id=2.a%20Statement%20of%20Compliance) This subsection outlines the company's adherence to IAS 34 for interim financial reporting - The unaudited condensed consolidated interim financial statements comply with IAS **34** and should be read with the audited annual financial statements for the year ended March 31, 2025[11](index=11&type=chunk) - The statements were authorized for issue by the Board of Directors on August 5, 2025[12](index=12&type=chunk) [2.b Adoption of New Accounting Standards, Interpretation or Amendments](index=8&type=section&id=2.b%20Adoption%20of%20New%20Accounting%20Standards,%20Interpretation%20or%20Amendments) This subsection details the adoption of IAS 21 amendments, effective April 1, 2025, with no material impact - The Company adopted amendments to IAS **21**, 'Lack of Exchangeability,' effective April 1, 2025, which clarify how to assess currency exchangeability and determine spot exchange rates when exchangeability is lacking[13](index=13&type=chunk) - These amendments did not have a material impact on the Company's interim financial statements[14](index=14&type=chunk) [2.c New Accounting Standards Issued but not effective](index=8&type=section&id=2.c%20New%20Accounting%20Standards%20Issued%20but%20not%20effective) This subsection identifies new accounting standards, including IFRS 18 and IFRS 9/7 amendments, issued but not yet effective - IFRS **18** 'Presentation and Disclosure in Financial Statements' (replacing IAS **1**) is effective for annual reporting periods beginning on or after January 1, 2027, with early adoption permitted[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) - Amendments to IFRS **9** and IFRS **7** regarding classification and measurement of financial instruments are effective for annual reporting periods beginning on or after January 1, 2026[19](index=19&type=chunk) [2.d Basis of Consolidation](index=9&type=section&id=2.d%20Basis%20of%20Consolidation) This subsection describes the consolidation principles for the company and its subsidiaries, including non-controlling interests - The condensed consolidated interim financial statements include the accounts of the Company and its wholly or partially owned subsidiaries, consolidated from the date control is obtained[20](index=20&type=chunk)[21](index=21&type=chunk) - Non-controlling interests are presented in the equity section for non-wholly owned subsidiaries, and net income attributable to them is calculated based on their ownership[22](index=22&type=chunk) Consolidated Subsidiaries | Name of subsidiaries | Principal activity | Place of incorporation | Ownership interest | | :------------------------------------ | :----------------- | :------------------- | :----------------- | | Henan Huawei Mining Co. Ltd. | Mining | China | **80%** | | Henan Found Mining Co. Ltd. | Mining | China | **77.5%** | | Xinshao Yunxiang Mining Co., Ltd. | Mining | China | **70%** | | Guangdong Found Mining Co. Ltd. | Mining | China | **99%** | | Shanxi Xinbaoyuan Mining Co., Ltd. | Mining | China | **77.5%** | | Curimining S.A | Mining | Ecuador | **75%** | | Condormine S.A | Mining | Ecuador | **98.7%** | [2.e Critical Accounting Judgments and Estimates](index=10&type=section&id=2.e%20Critical%20Accounting%20Judgments%20and%20Estimates) This subsection confirms the application of consistent critical accounting judgments and estimates as in prior annual financial statements - These condensed consolidated interim financial statements follow the same significant accounting judgments and estimates as those set out in Note **2** to the audited consolidated financial statements for the year ended March 31, 2025[26](index=26&type=chunk) [3. SEGMENTED INFORMATION](index=10&type=section&id=3.%20SEGMENTED%20INFORMATION) The company operates in the mining and metals industry, with reportable segments including producing mines in China (Ying Mining District, GC Mine) and development/exploration projects in Ecuador (El Domo, Condor) - The Company's significant operating segments include two producing properties in China (Ying Mining District, GC Mine) and two development and exploration projects in Ecuador (El Domo, Condor)[29](index=29&type=chunk) - An operating segment is defined by engaging in business activities that earn revenues or incur expenses, whose operating results are regularly reviewed by the chief operating decision maker, and for which discrete financial information is available[30](index=30&type=chunk) [3.a Segmented information for operating results](index=11&type=section&id=3.a%20Segmented%20information%20for%20operating%20results) This subsection provides a breakdown of operating results by segment, including revenue and net income (loss) Segmented Operating Results (USD thousands) | Segment | Three months ended June 30, 2025 (USD thousands) | Three months ended June 30, 2024 (USD thousands) | | :-------------------- | :----------------------------------------------- | :----------------------------------------------- | | **Revenue** | | | | Ying Mining District | **73,378** | **62,783** | | GC Mine | **7,956** | **9,382** | | Total Revenue | **81,334** | **72,165** | | **Net income (loss)** | | | | Ying Mining District | **29,099** | **28,228** | | GC Mine | **1,213** | **2,569** | | El Domo | (**567**) | — | | Condor | (**72**) | — | | Other | (**5,325**) | (**2,668**) | | Total Net Income | **24,348** | **28,129** | - Ying Mining District's revenue increased by **$10.595 million (16.9%)** year-over-year, while GC Mine's revenue decreased by **$1.426 million (15.2%)**[31](index=31&type=chunk) - Ecuador segments (El Domo and Condor) reported net losses in **2025**, reflecting their development stage[31](index=31&type=chunk) [3.b Segmented information for assets and liabilities](index=12&type=section&id=3.b%20Segmented%20information%20for%20assets%20and%20liabilities) This subsection presents segmented information for total assets and liabilities, highlighting changes across operating segments Segmented Assets and Liabilities (USD thousands) | Segment | Total Assets (June 30, 2025, USD thousands) | Total Assets (March 31, 2025, USD thousands) | | :-------------------- | :------------------------------------------ | :------------------------------------------- | | Ying Mining District | **523,799** | **506,816** | | GC Mine | **74,620** | **71,595** | | El Domo | **235,318** | **236,779** | | Condor | **28,313** | **28,057** | | Other | **316,135** | **295,694** | | Total Assets | **1,178,185** | **1,138,941** | | **Total Liabilities** | | | | Ying Mining District | **133,732** | **119,912** | | GC Mine | **11,335** | **10,263** | | El Domo | **1,876** | **4,303** | | Condor | **504** | **180** | | Other | **173,500** | **170,895** | | Total Liabilities | **320,947** | **305,553** | - Total assets for Ying Mining District increased by **$16.983 million**, and for GC Mine by **$3.025 million**, from March 31, 2025, to June 30, 2025[32](index=32&type=chunk) - El Domo's total assets slightly decreased, while Condor's increased, reflecting ongoing development activities[32](index=32&type=chunk) [3.c Sales by metal](index=13&type=section&id=3.c%20Sales%20by%20metal) This subsection details the company's revenue breakdown by metal type, including silver, gold, lead, and zinc Sales by Metal (USD thousands) | Metal | Three months ended June 30, 2025 (USD thousands) | Three months ended June 30, 2024 (USD thousands) | | :------ | :----------------------------------------------- | :----------------------------------------------- | | Silver | **54,024** | **45,798** | | Gold | **5,611** | **1,986** | | Lead | **14,616** | **15,583** | | Zinc | **4,993** | **6,581** | | Other | **2,090** | **2,217** | | Total | **81,334** | **72,165** | - Silver sales increased by **$8.226 million (17.9%)** year-over-year, remaining the largest revenue contributor[33](index=33&type=chunk) - Gold sales significantly increased by **$3.625 million (182.5%)** year-over-year[33](index=33&type=chunk) - Lead and Zinc sales decreased by **$0.967 million (6.2%)** and **$1.588 million (24.1%)** respectively[33](index=33&type=chunk) [3.d Major customers](index=13&type=section&id=3.d%20Major%20customers) This subsection identifies major customers and their contribution to total revenue, indicating customer concentration Major Customers Revenue (USD thousands) | Customer | Three months ended June 30, 2025 (USD thousands) | Percentage of total revenue (2025) | Three months ended June 30, 2024 (USD thousands) | Percentage of total revenue (2024) | | :--------- | :----------------------------------------------- | :--------------------------------- | :----------------------------------------------- | :--------------------------------- | | Customer A | **16,430** | **20%** | **12,058** | **17%** | | Customer D | **13,783** | **17%** | **13,116** | **18%** | | Customer E | **13,628** | **17%** | **16,468** | **23%** | | Customer B | **12,235** | **15%** | **16,169** | **22%** | | Customer C | **9,727** | **12%** | **3,112** | **4%** | | Total Major Customers | **65,803** | **81%** | **60,923** | **84%** | - Revenue from the top five customers accounted for **81%** of total revenue in Q2 **2025**, indicating high customer concentration[34](index=34&type=chunk) - Customer A's contribution to total revenue increased from **17%** in **2024** to **20%** in **2025**, while Customer E and B's percentages decreased[34](index=34&type=chunk) [4. GOVERNMENT FEES AND OTHER TAXES](index=14&type=section&id=4.%20GOVERNMENT%20FEES%20AND%20OTHER%20TAXES) Government fees and other taxes significantly increased for the three months ended June 30, 2025, primarily due to the introduction of a mineral rights royalty in Henan Province, China, which was not present in the prior year Government Fees and Other Taxes (USD thousands) | Item | Three Months Ended June 30, 2025 (USD thousands) | Three Months Ended June 30, 2024 (USD thousands) | | :---------------------- | :----------------------------------------------- | :----------------------------------------------- | | Government fees | **21** | **15** | | Mineral rights royalty | **1,481** | — | | Other taxes | **771** | **620** | | Total | **2,273** | **635** | - Total government fees and other taxes increased by **$1.638 million (257.9%)** year-over-year[35](index=35&type=chunk) - The introduction of a mineral rights royalty of **$1.481 million** in **2025**, pursuant to a new guideline in Henan, China, was the primary driver of the increase[35](index=35&type=chunk) - Other taxes include surtax on value-added tax, land usage levy, stamp duty, and other miscellaneous levies[36](index=36&type=chunk) [5. GENERAL AND ADMINISTRATIVE](index=14&type=section&id=5.%20GENERAL%20AND%20ADMINISTRATIVE) General and administrative expenses for both mining and corporate operations increased for the three months ended June 30, 2025 General and Administrative Expenses (USD thousands) | Item | Three Months Ended June 30, 2025 (USD thousands) | Three Months Ended June 30, 2024 (USD thousands) | | :------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | | **Mining Operations G&A** | | | | Amortization and depreciation | **231** | **278** | | Office administrative expenses | **558** | **688** | | Professional fees | **95** | **90** | | Salaries and benefits | **2,248** | **1,564** | | Total Mining G&A | **3,132** | **2,620** | | **Corporate Operations G&A** | | | | Amortization and depreciation | **206** | **178** | | Office administrative expenses | **1,000** | **665** | | Professional fees | **308** | **313** | | Salaries and benefits | **2,070** | **1,930** | | Share-based compensation | **1,194** | **1,201** | | Total Corporate G&A | **4,778** | **4,287** | - Mining operations general and administrative expenses increased by **$0.512 million (19.5%)** year-over-year, primarily driven by a **$0.684 million** increase in salaries and benefits[37](index=37&type=chunk) - Corporate general and administrative expenses increased by **$0.491 million (11.5%)** year-over-year, mainly due to higher office administrative expenses and salaries and benefits[37](index=37&type=chunk) [6. FINANCE ITEMS](index=15&type=section&id=6.%20FINANCE%20ITEMS) The company shifted from net finance income in Q2 2024 to net finance costs in Q2 2025, primarily due to a substantial increase in interest on convertible notes, which were not present in the prior year, despite a rise in interest income Finance Items (USD thousands) | Item | Three Months Ended June 30, 2025 (USD thousands) | Three Months Ended June 30, 2024 (USD thousands) | | :------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | | Finance income (Interest income) | **3,308** | **1,680** | | Finance costs | | | | Interest on lease obligation | **84** | **30** | | Interest on convertible notes | **3,195** | — | | Accretion of environmental rehabilitation liabilities | **45** | **35** | | Total Finance Costs | **3,324** | **65** | | Net finance (costs) income | (**16**) | **1,615** | - Net finance items changed from an income of **$1.615 million** in **2024** to a cost of **$0.016 million** in **2025**[38](index=38&type=chunk) - Interest income increased by **$1.628 million (96.9%)** year-over-year[38](index=38&type=chunk) - Finance costs significantly increased by **$3.259 million**, primarily due to **$3.195 million** in interest on convertible notes, which were not present in the prior year[38](index=38&type=chunk) [7. INCOME TAX](index=15&type=section&id=7.%20INCOME%20TAX) Income tax expense decreased for the three months ended June 30, 2025, primarily due to a deferred income tax recovery, contrasting with a deferred tax expense in the prior year, despite an increase in current income tax Income Tax Expense (USD thousands) | Item | Three Months Ended June 30, 2025 (USD thousands) | Three Months Ended June 30, 2024 (USD thousands) | | :-------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Current income tax | **7,936** | **4,321** | | Deferred income tax | (**1,500**) | **3,026** | | Total Income tax expense | **6,436** | **7,347** | - Total income tax expense decreased by **$0.911 million (12.4%)** year-over-year[39](index=39&type=chunk) - Current income tax increased by **$3.615 million (83.6%)** year-over-year[39](index=39&type=chunk) - Deferred income tax shifted from an expense of **$3.026 million** in **2024** to a recovery of **$1.500 million** in **2025**[39](index=39&type=chunk) [8. SHORT-TERM INVESTMENTS](index=15&type=section&id=8.%20SHORT-TERM%20INVESTMENTS) Short-term investments significantly decreased as of June 30, 2025, primarily due to a substantial reduction in money market instruments Short-term Investments (USD thousands) | Item | June 30, 2025 (USD thousands) | March 31, 2025 (USD thousands) | | :---------------------------------- | :---------------------------- | :----------------------------- | | Bonds, defaulted and measured at fair value | **299** | **316** | | Money market instruments | **722** | **4,762** | | Total Short-term investments | **1,021** | **5,078** | - Short-term investments decreased by **$4.057 million (79.9%)** from March 31, 2025, to June 30, 2025[40](index=40&type=chunk) - Money market instruments saw a significant decrease of **$4.040 million**[40](index=40&type=chunk) [9. INVENTORIES](index=15&type=section&id=9.%20INVENTORIES) Inventories increased as of June 30, 2025, driven by higher ore stockpile and material and supplies, while concentrate inventory slightly decreased Inventories (USD thousands) | Item | June 30, 2025 (USD thousands) | March 31, 2025 (USD thousands) | | :------------------ | :---------------------------- | :----------------------------- | | Concentrate inventory | **1,662** | **1,800** | | Ore stockpile | **3,849** | **2,553** | | Material and supplies | **4,181** | **3,675** | | Total Inventories | **9,692** | **8,028** | - Total inventories increased by **$1.664 million (20.7%)** from March 31, 2025, to June 30, 2025[41](index=41&type=chunk) - Ore stockpile increased by **$1.296 million**, and material and supplies increased by **$0.506 million**[41](index=41&type=chunk) - Inventories recognized as expense during Q2 **2025** were **$38.4 million**, up from **$30.7 million** in Q2 **2024**[41](index=41&type=chunk) [10. OTHER INVESTMENTS](index=16&type=section&id=10.%20OTHER%20INVESTMENTS) Other investments significantly increased as of June 30, 2025, primarily due to higher investments designated as FVTPL (Fair Value Through Profit or Loss) in public companies and gains on these investments, along with new acquisitions Other Investments (USD thousands) | Item | June 30, 2025 (USD thousands) | March 31, 2025 (USD thousands) | | :---------------------------------- | :---------------------------- | :----------------------------- | | Investments designated as FVTOCI (Public companies) | **2,174** | **1,334** | | Investments designated as FVTPL (Public companies) | **19,775** | **13,409** | | Investments designated as FVTPL (Private companies) | **2,534** | **2,534** | | Total Other Investments | **24,483** | **17,277** | - Total other investments increased by **$7.206 million (41.7%)** from March 31, 2025, to June 30, 2025[42](index=42&type=chunk) - Investments designated as FVTPL in public companies increased by **$6.366 million**[42](index=42&type=chunk) - The company recorded a gain on equity investments designated as FVTPL of **$4.421 million** and FVTOCI of **$0.756 million** during the period[42](index=42&type=chunk) [11. INVESTMENT IN ASSOCIATES](index=16&type=section&id=11.%20INVESTMENT%20IN%20ASSOCIATES) The company holds significant influence investments in two Canadian public companies, New Pacific Metals Corp. (NUAG) and Tincorp Metals Inc. (TIN), accounted for using the equity method - The Company accounts for its investments in New Pacific Metals Corp. (NUAG) and Tincorp Metals Inc. (TIN) using the equity method, as it exercises significant influence over their financial and operating policies[43](index=43&type=chunk)[46](index=46&type=chunk) [11.a Investment in New Pacific Metals Corp.](index=16&type=section&id=11.a%20Investment%20in%20New%20Pacific%20Metals%20Corp.) This subsection details the company's equity method investment in New Pacific Metals Corp., including ownership and carrying value changes - As at June 30, 2025, the Company owned **48,341,452** common shares of NUAG, representing an ownership interest of **28.1%** (up from **27.3%** at March 31, 2025)[44](index=44&type=chunk) Investment in New Pacific Metals Corp. | Metric | As at June 30, 2025 | As at March 31, 2025 | | :-------------------------------- | :------------------ | :------------------- | | Number of shares | **48,341,452** | **46,907,701** | | Investment Amount (USD thousands) | **47,003** | **45,276** | | Market Value (USD thousands) | **64,778** | **51,598** | - The investment in NUAG increased by **$1.727 million** from March 31, 2025, to June 30, 2025, primarily due to open market purchases of **1,433,751** shares[45](index=45&type=chunk) [11.b Investment in Tincorp Metals Inc.](index=17&type=section&id=11.b%20Investment%20in%20Tincorp%20Metals%20Inc.) This subsection details the company's equity method investment in Tincorp Metals Inc., including ownership and carrying value changes - As at June 30, 2025, the Company owned **19,864,285** common shares of TIN, representing an ownership interest of **29.1%** (unchanged from March 31, 2025)[47](index=47&type=chunk) Investment in Tincorp Metals Inc. | Metric | As at June 30, 2025 | As at March 31, 2025 | | :-------------------------------- | :------------------ | :------------------- | | Number of shares | **19,864,285** | **19,864,285** | | Investment Amount (USD thousands) | **672** | **740** | | Market Value (USD thousands) | **2,184** | **2,073** | - The investment in TIN decreased by **$0.068 million** from March 31, 2025, to June 30, 2025, primarily due to a share of net loss from TIN[48](index=48&type=chunk) [12. INVESTMENT PROPERTIES](index=18&type=section&id=12.%20INVESTMENT%20PROPERTIES) Investment properties, consisting of real estate rented for income, remained stable in net carrying value as of June 30, 2025 Investment Properties (USD thousands) | Metric | As at June 30, 2025 (USD thousands) | As at March 31, 2025 (USD thousands) | | :-------------------- | :---------------------------------- | :--------------------------------- | | Costs | **1,241** | **1,231** | | Accumulated depreciation and amortization | (**738**) | (**720**) | | Net carrying value | **503** | **511** | - The net carrying value of investment properties slightly decreased by **$0.008 million** from March 31, 2025, to June 30, 2025[49](index=49&type=chunk) - The estimated fair value of the properties was approximately **$1.9 million** as at June 30, 2025, significantly higher than the carrying value[49](index=49&type=chunk) - Rental income of **$0.02 million** was recorded during the three months ended June 30, 2025[50](index=50&type=chunk) [13. PLANT AND EQUIPMENT](index=19&type=section&id=13.%20PLANT%20AND%20EQUIPMENT) The net carrying value of plant and equipment remained stable as of June 30, 2025, with additions and foreign currency translation impacts largely offset by disposals and depreciation Plant and Equipment (USD thousands) | Item | As at June 30, 2025 (USD thousands) | As at March 31, 2025 (USD thousands) | | :-------------------- | :---------------------------------- | :--------------------------------- | | Total Cost | **198,759** | **195,778** | | Total Accumulated amortization and impairment | (**104,486**) | (**101,985**) | | Total Carrying amounts | **94,273** | **93,793** | | Construction in progress | **3,797** | **3,726** | - The total carrying amount of plant and equipment increased by **$0.480 million** from March 31, 2025, to June 30, 2025[51](index=51&type=chunk) - Additions to plant and equipment totaled **$1.798 million** during the three months ended June 30, 2025[51](index=51&type=chunk) - Depreciation and amortization for the period amounted to **$2.477 million**[51](index=51&type=chunk) [14. MINERAL RIGHTS AND PROPERTIES](index=20&type=section&id=14.%20MINERAL%20RIGHTS%20AND%20PROPERTIES) Mineral rights and properties increased as of June 30, 2025, driven by capitalized expenditures in both producing and non-producing properties, particularly the El Domo and Condor projects acquired in July 2024 Mineral Rights and Properties (USD thousands) | Item | As at June 30, 2025 (USD thousands) | As at March 31, 2025 (USD thousands) | | :-------------------------- | :---------------------------------- | :--------------------------------- | | Producing mineral properties | **346,366** | **332,631** | | Non-producing mineral properties | **260,310** | **254,351** | | Total Mineral rights and properties | **606,676** | **586,982** | - Total mineral rights and properties increased by **$19.694 million (3.3%)** from March 31, 2025, to June 30, 2025[52](index=52&type=chunk) - Capitalized expenditures for producing properties totaled **$16.694 million**, and for non-producing properties, **$5.703 million** during the period[52](index=52&type=chunk) - The Constitutional Court of Ecuador rejected an Extraordinary Protection Action and a subsequent clarification motion, affirming the environmental license for the El Domo Project[54](index=54&type=chunk) [15. CONVERTIBLE NOTES](index=21&type=section&id=15.%20CONVERTIBLE%20NOTES) The company issued **$150 million** in unsecured Convertible Senior Notes in November 2024, maturing in December 2029 with a **4.75%** fixed interest rate - On November 25, 2024, the Company issued **$150 million** in unsecured Convertible Senior Notes, maturing on December 15, 2029, with a **4.75%** annual interest rate[55](index=55&type=chunk) - The conversion feature is accounted for as a derivative liability at fair value through profit or loss, while the host debt contract is at amortized cost[57](index=57&type=chunk) Convertible Notes (USD thousands) | Item | As at June 30, 2025 (USD thousands) | As at March 31, 2025 (USD thousands) | | :-------------------- | :---------------------------------- | :--------------------------------- | | Host liability | **110,185** | **110,653** | | Derivative liability | **53,678** | **49,028** | | Total Convertible Notes | **163,863** | **159,681** | | Current liability | **293** | **2,460** | | Non-current liability | **163,570** | **157,221** | - The derivative liability component increased by **$4.650 million** from March 31, 2025, to June 30, 2025, due to changes in fair value estimates[59](index=59&type=chunk) [16. LEASES](index=23&type=section&id=16.%20LEASES) The company's lease obligation, primarily for office space, slightly increased as of June 30, 2025, due to lease modifications and foreign exchange impact, partially offset by lease repayments Lease Obligations (USD thousands) | Item | As at June 30, 2025 (USD thousands) | As at March 31, 2025 (USD thousands) | | :-------------------- | :---------------------------------- | :--------------------------------- | | Balance, beginning of period | **1,331** | **1,315** | | Change due to lease modifications | **59** | — | | Interest accrual | **27** | **125** | | Lease repayment | (**65**) | (**271**) | | Foreign exchange impact | **60** | **4** | | Balance, end of period | **1,385** | **1,331** | | Current portion | **300** | **278** | | Non-current portion | **1,085** | **1,053** | - The total lease obligation increased by **$0.054 million** from March 31, 2025, to June 30, 2025[61](index=61&type=chunk) - The undiscounted contractual obligation for leases totals **$1.648 million**, with **$0.352 million** due within one year[61](index=61&type=chunk) - Lease obligations are discounted at rates ranging from **7.0%** to **15.6%**[61](index=61&type=chunk) [17. ENVIRONMENTAL REHABILITATION OBLIGATION](index=24&type=section&id=17.%20ENVIRONMENTAL%20REHABILITATION%20OBLIGATION) The environmental rehabilitation obligation remained stable as of June 30, 2025, with reclamation expenditures and unwinding of discount being the primary movements Environmental Rehabilitation Obligation (USD thousands) | Item | As at June 30, 2025 (USD thousands) | As at March 31, 2025 (USD thousands) | | :------------------------------------------ | :---------------------------------- | :--------------------------------- | | Balance, beginning of period | **9,639** | **6,442** | | Reclamation expenditures | (**195**) | (**819**) | | Unwinding of discount | **45** | **139** | | Foreign exchange impact | **123** | (**26**) | | Balance, end of period | **9,612** | **9,639** | - The environmental rehabilitation obligation slightly decreased by **$0.027 million** from March 31, 2025, to June 30, 2025[62](index=62&type=chunk) - The total undiscounted amount of estimated cash flows required to settle the provision was **$13.0 million** as at June 30, 2025, discounted at an average rate of **1.94%**[62](index=62&type=chunk) - Actual reclamation expenditures were **$0.2 million** during Q2 **2025**[63](index=63&type=chunk) [18. SHARE CAPITAL](index=24&type=section&id=18.%20SHARE%20CAPITAL) The company's share capital increased due to options exercised and share-based compensation, while maintaining a share-based compensation plan for stock options, restricted share units (RSUs), and performance share units (PSUs) - The Company has an unlimited number of common shares authorized without par value, all fully paid[65](index=65&type=chunk) - A total of **$1.2 million** in share-based compensation expense was recognized for the three months ended June 30, 2025[67](index=67&type=chunk) - Dividends of **$2.7 million**, or **$0.0125 per share**, were declared and paid during the three months ended June 30, 2025[74](index=74&type=chunk) [18.a Authorized](index=24&type=section&id=18.a%20Authorized) This subsection states the company's authorized share capital, consisting of an unlimited number of common shares without par value - The Company is authorized to issue an unlimited number of common shares without par value, all of which were fully paid as at June 30, 2025[65](index=65&type=chunk) [18.b Share-based compensation](index=24&type=section&id=18.b%20Share-based%20compensation) This subsection details the company's share-based compensation plans, including stock options, RSUs, and PSUs - The Company's share-based compensation plan includes stock options, restricted share units (RSUs), and performance share units (PSUs), with a rolling **10%** limit on common shares reserved for issuance[66](index=66&type=chunk) - A total of **$1.2 million** in share-based compensation expense was recognized for the three months ended June 30, 2025[67](index=67&type=chunk) [18.b.i Stock options](index=25&type=section&id=18.b.i%20Stock%20options) This subsection details the company's stock option plan, including grants, outstanding options, and valuation methods Stock Options | Metric | As at June 30, 2025 | As at March 31, 2025 | | :-------------------------------- | :------------------ | :------------------- | | Number of options outstanding | **2,206,814** | **2,279,980** | | Weighted average exercise price (CAD) | **6.20** | **6.20** | | Number of options exercisable | **1,702,647** | N/A | | Weighted average exercise price of exercisable options (CAD) | **6.63** | **6.54** | - **277,500** options were granted during Q2 **2025** with a weighted average exercise price of **CAD$5.06**[68](index=68&type=chunk) - The fair value of granted stock options was calculated using the Black-Scholes model with a risk-free interest rate of **2.63%** and expected volatility of **48.50%**[69](index=69&type=chunk) [18.b.ii Share purchase warrants](index=26&type=section&id=18.b.ii%20Share%20purchase%20warrants) This subsection describes the company's share purchase warrants, their reclassification to derivative liabilities, and valuation Share Purchase Warrants | Metric | As at June 30, 2025 | As at March 31, 2025 | | :-------------------------------- | :------------------ | :------------------- | | Number of warrants outstanding | **1,370,249** | **1,370,249** | | Weighted average exercise price (CAD) | **4.41** | **4.41** | | Balance of derivative liability (USD thousands) | **1,947** | **1,740** | - In October **2024**, CAD-denominated warrants were reclassified from equity to derivative liabilities at fair value due to a change in functional currency to USD[70](index=70&type=chunk) - The fair value of share purchase warrants was calculated using the Black-Scholes model with a risk-free interest rate of **2.60%** and expected volatility of **51.48%** as of June 30, 2025[71](index=71&type=chunk) [18.b.iii RSUs](index=27&type=section&id=18.b.iii%20RSUs) This subsection outlines the company's Restricted Share Units (RSUs) program, including grants and outstanding units Restricted Share Units (RSUs) | Metric | As at June 30, 2025 | As at March 31, 2025 | | :-------------------------------- | :------------------ | :------------------- | | Number of units outstanding | **3,035,996** | **2,197,873** | | Weighted average grant date closing price (CAD) | **4.76** | **4.58** | - **1,165,500** RSUs were granted during Q2 **2025** to directors, officers, and employees, vesting over a three-year term[72](index=72&type=chunk) - Subsequent to June 30, 2025, **311,333** RSUs were distributed[73](index=73&type=chunk) [18.c Cash dividends declared](index=27&type=section&id=18.c%20Cash%20dividends%20declared) This subsection reports the cash dividends declared and paid during the period - During the three months ended June 30, 2025, dividends of **$2.7 million**, or **$0.0125 per share**, were declared and paid[74](index=74&type=chunk) [18.d Normal course issuer bid](index=27&type=section&id=18.d%20Normal%20course%20issuer%20bid) This subsection describes the company's normal course issuer bid (NCIB) and share repurchase activity - The Company announced a normal course issuer bid (NCIB) on September 17, 2024, to repurchase up to **8,670,700** common shares until September 18, 2025[75](index=75&type=chunk) - No common shares were repurchased under the NCIB during the three months ended June 30, 2025[75](index=75&type=chunk) [19. ACCUMULATED OTHER COMPREHENSIVE LOSS](index=28&type=section&id=19.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS) Accumulated other comprehensive loss decreased as of June 30, 2025, primarily due to a reduction in loss on currency translation adjustment and a gain on investments designated as FVTOCI Accumulated Other Comprehensive Loss (USD thousands) | Item | As at June 30, 2025 (USD thousands) | As at March 31, 2025 (USD thousands) | | :-------------------------------- | :---------------------------------- | :--------------------------------- | | Loss on investments designated as FVTOCI | **23,660** | **24,416** | | Share of loss in associate | **1,761** | **2,233** | | Loss on currency translation adjustment | **31,012** | **36,002** | | Total Accumulated other comprehensive loss | **56,433** | **62,651** | - Accumulated other comprehensive loss decreased by **$6.218 million** from March 31, 2025, to June 30, 2025[76](index=76&type=chunk) - The loss on currency translation adjustment decreased by **$4.990 million**[76](index=76&type=chunk) - The change in fair value on equity investments designated as FVTOCI, share of other comprehensive loss in associates, and currency translation adjustment are net of tax of **$nil**[76](index=76&type=chunk) [20. NON-CONTROLLING INTERESTS](index=28&type=section&id=20.%20NON-CONTROLLING%20INTERESTS) Non-controlling interests (NCI) slightly increased as of June 30, 2025, primarily due to their share of net income and other comprehensive income, partially offset by distributions Non-Controlling Interests (USD thousands) | Item | As at June 30, 2025 (USD thousands) | As at March 31, 2025 (USD thousands) | | :-------------------------------- | :---------------------------------- | :--------------------------------- | | Balance, beginning of period | **130,660** | **89,754** | | Share of net income (loss) | **6,222** | **20,579** | | Share of other comprehensive income | **1,185** | **144** | | Distribution | (**7,110**) | (**11,049**) | | Balance, end of period | **131,220** | **130,660** | - Total non-controlling interests increased by **$0.560 million** from March 31, 2025, to June 30, 2025[77](index=77&type=chunk) - Non-controlling interests' share of net income was **$6.222 million** for Q2 **2025**[77](index=77&type=chunk) - The effective percentage of non-controlling interest in Salazar Holding (El Domo Project) was **13.6%** as at June 30, 2025[77](index=77&type=chunk) [21. RELATED PARTY TRANSACTIONS](index=29&type=section&id=21.%20RELATED%20PARTY%20TRANSACTIONS) Related party balances due from NUAG and TIN increased as of June 30, 2025 Related Party Balances (USD thousands) | Related Party | As at June 30, 2025 (USD thousands) | As at March 31, 2025 (USD thousands) | | :-------------- | :---------------------------------- | :--------------------------------- | | NUAG | **99** | **33** | | TIN | **1,181** | **1,125** | | Total Due from related parties | **1,280** | **1,158** | - Balances due from related parties increased by **$0.122 million** from March 31, 2025, to June 30, 2025[79](index=79&type=chunk) - The Company recovers **$0.1 million** for services rendered to NUAG and **$0.06 million** for services rendered to TIN during Q2 **2025**[84](index=84&type=chunk) - An interest-free unsecured credit facility agreement with TIN was extended to January 31, 2026[80](index=80&type=chunk) [22. CAPITAL DISCLOSURES](index=29&type=section&id=22.%20CAPITAL%20DISCLOSURES) The company's capital management objectives are to support ongoing operations, mineral property development, and expansion plans - Capital management objectives include safeguarding the entity's ability to support normal operating requirements, continue development and exploration, and support expansionary plans[81](index=81&type=chunk) - Capital is primarily secured through profitable operations and issuances of equity capital[82](index=82&type=chunk) - Surplus capital is invested in short-term, liquid, and highly rated financial instruments[82](index=82&type=chunk) [23. FINANCIAL INSTRUMENTS](index=29&type=section&id=23.%20FINANCIAL%20INSTRUMENTS) The company manages various financial risks including liquidity, foreign exchange, interest rate, credit, equity price, and metal price risks - The Company manages exposure to financial risks including liquidity, foreign exchange, interest rate, credit, and equity price risk[83](index=83&type=chunk) - Financial instruments are classified within a fair value hierarchy (Level **1**, **2**, **3**) based on the significance of inputs used in measurements[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) - The Company is exposed to foreign exchange risk primarily relating to financial instruments denominated in RMB, CAD, and AUD[95](index=95&type=chunk) [23.a Fair value](index=30&type=section&id=23.a%20Fair%20value) This subsection details the fair value hierarchy of financial instruments, including cash, investments, and derivative liabilities Fair Value Hierarchy of Financial Instruments (USD thousands) | Item | Level 1 (USD thousands) | Level 2 (USD thousands) | Level 3 (USD thousands) | Total (USD thousands) | | :-------------------------------- | :---------------------- | :---------------------- | :---------------------- | :-------------------- | | **Financial assets (June 30, 2025)** | | | | | | Cash and cash equivalents | **376,112** | — | — | **376,112** | | Short-term investments | **1,021** | — | — | **1,021** | | Other investments | **21,949** | — | **2,534** | **24,483** | | **Financial liability (June 30, 2025)** | | | | | | Derivative liabilities | — | **55,625** | — | **55,625** | | **Financial assets (March 31, 2025)** | | | | | | Cash and cash equivalents | **363,978** | — | — | **363,978** | | Short-term investments | **4,762** | — | — | **4,762** | | Investments in public companies | **14,743** | — | — | **14,743** | | Investments in private companies | — | — | **2,534** | **2,534** | | **Financial liability (March 31, 2025)** | | | | | | Derivative liabilities | — | **50,768** | — | **50,768** | - Financial assets classified within Level **3** are equity investments in private companies and one public company suspended from quotation, valued using unobservable inputs[88](index=88&type=chunk) - There were no transfers into or out of Level **3** during the three months ended June 30, 2025 and 2024[90](index=90&type=chunk) [23.b Liquidity risk](index=30&type=section&id=23.b%20Liquidity%20risk) This subsection outlines the company's management of liquidity risk by monitoring cash flows and matching asset/liability maturities - The Company manages liquidity risk by monitoring actual and projected cash flows and matching the maturity profile of financial assets and liabilities[91](index=91&type=chunk) Contractual Obligations (USD thousands) | Contractual Obligation | Within a year (USD thousands) | 2-5 years (USD thousands) | Total (USD thousands) | | :----------------------------- | :---------------------------- | :------------------------ | :-------------------- | | Accounts payable and accrued liabilities | **68,172** | — | **68,172** | | Deposits received | **13,365** | — | **13,365** | | Convertible notes | **7,125** | **174,967** | **182,092** | | Lease obligation | **352** | **1,296** | **1,648** | | Total Contractual Obligation | **89,014** | **176,263** | **265,277** | [23.c Foreign exchange risk](index=31&type=section&id=23.c%20Foreign%20exchange%20risk) This subsection describes the company's exposure to foreign exchange risk, primarily from RMB, CAD, and AUD denominated instruments - The Company is exposed to foreign exchange risk primarily relating to financial instruments denominated in RMB (functional currency of Chinese subsidiaries), CAD, and AUD[95](index=95&type=chunk) - A +/- **10%** change in exchange rates would result in an approximate **$9.064 million** impact on RMB-denominated assets/liabilities, **$2.010 million** on CAD, and **$0.177 million** on AUD[96](index=96&type=chunk) - The Company currently does not engage in foreign exchange currency hedging[96](index=96&type=chunk) [23.d Interest rate risk](index=31&type=section&id=23.d%20Interest%20rate%20risk) This subsection details the company's exposure to interest rate risk on various financial instruments and its potential impact on net income - The Company is exposed to interest rate risk on its cash and cash equivalents, short-term investments, lease liabilities, convertible notes, and derivative instruments[97](index=97&type=chunk) - Due to the short-term nature of cash, cash equivalents, and short-term investments, fluctuations in interest rates would not have a significant impact on net income[97](index=97&type=chunk) - A **10 basis point** increase or decrease in market interest rate would result in an approximate **$0.2 million** increase (decrease) to net income due to derivative liabilities[99](index=99&type=chunk) [23.e Credit risk](index=32&type=section&id=23.e%20Credit%20risk) This subsection outlines the company's credit risk management, primarily associated with receivables and cash equivalents - The Company's credit risk is primarily associated with accounts receivable, due from related parties, cash and cash equivalents, and short-term investments[100](index=100&type=chunk) - The Company undertakes credit evaluations and requests deposits to mitigate credit risks[101](index=101&type=chunk) - There were no material amounts in trade or other receivables past due on June 30, 2025[101](index=101&type=chunk) [23.f Equity price risk](index=32&type=section&id=23.f%20Equity%20price%20risk) This subsection describes the company's exposure to equity price risk from marketable securities and its own share price impact on derivative liabilities - The Company holds marketable securities, mainly in mining companies, whose value fluctuates with market and commodity prices[102](index=102&type=chunk) - A **10%** increase (decrease) in the market price of securities held would result in an approximate **$2.4 million** increase (decrease) to net income[102](index=102&type=chunk) - A **10%** increase in the Company's share price would decrease net income by **$10.1 million**, while a **10%** decrease would increase net income by **$4.7 million**, due to derivative liabilities[103](index=103&type=chunk) [23.g Metal price risk](index=32&type=section&id=23.g%20Metal%20price%20risk) This subsection details the company's exposure to metal price risk for silver, lead, zinc, and gold, and factors influencing these prices - The Company primarily produces and sells silver, lead, zinc, and gold, with prices fixed against various Shanghai exchanges[104](index=104&type=chunk) - Metal prices are affected by numerous factors beyond the Company's control, including economic conditions, currency exchange, supply/demand, and speculative activities[105](index=105&type=chunk) - A significant decline in metal prices could impact the Company's operations, project development, and ability to fulfill obligations[106](index=106&type=chunk) [24. SUPPLEMENTARY CASH FLOW INFORMATION](index=33&type=section&id=24.%20SUPPLEMENTARY%20CASH%20FLOW%20INFORMATION) Supplementary cash flow information details changes in non-cash operating working capital, non-cash capital transactions, and the composition of cash and cash equivalents Supplementary Cash Flow Information (USD thousands) | Item | Three Months Ended June 30, 2025 (USD thousands) | Three Months Ended June 30, 2024 (USD thousands) | | :------------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | | **Changes in non-cash operating working capital** | | | | Trade and other receivables | **352** | **1,721** | | Inventories | (**1,315**) | (**4,106**) | | Prepaids and deposits | (**363**) | (**3,069**) | | Accounts payable and accrued liabilities | **5,169** | **6,548** | | Deposits received | **5,951** | (**22**) | | Due from a related party | (**122**) | (**549**) | | Net change in non-cash operating working capital | **9,672** | **523** | | **Non-cash capital transactions** | | | | Additions of plant and equipment included in accounts payable | (**1,007**) | **828** | | Capital expenditures of mineral rights and properties included in accounts payable | (**564**) | **2,443** | | **Cash and cash equivalents** | | | | Cash on hand and at bank | **66,457** | N/A | | Bank term deposits and short-term money market investments | **309,655** | N/A | | Total cash and cash equivalents | **376,112** | N/A | - Changes in non-cash operating working capital provided **$9.672 million** in cash in Q2 **2025**, a significant increase from **$0.523 million** in Q2 **2024**[107](index=107&type=chunk) - Cash and cash equivalents at June 30, 2025, comprised **$66.457 million** in cash on hand and at bank, and **$309.655 million** in bank term deposits and short-term money market investments[107](index=107&type=chunk)

Financial Data and Key Metrics Changes - The company reported revenues of $81 million, a 13% increase from the previous year [4] - Cash flow from operating activities reached a record $48 million, up 21% year-over-year [4] - Net income for the quarter was $18.1 million, or $0.08 per share, down from $21.9 million or $0.12 per share in 2025 [5] - Adjusted net income was $21 million or $0.10 per share, compared to $20.6 million or $0.11 per share in the prior year [5] - The cash position at the end of the quarter was $377 million, an increase of $8 million from March [6] Business Line Data and Key Metrics Changes - Silver sales increased by 595%, while gold sales rose by 1245% compared to Q1 of last year [4] - Silver contributed 66% of Q1 revenue, lead contributed 18%, and gold contributed 7% [4] - Production of silver was approximately 1.8 million ounces, gold was just over 2,000 ounces, lead was 16 million pounds, and zinc was 5 million pounds [7] - Production costs averaged $83 per tonne at Ying, down 8% from last year [7] - Consolidated cash cost per ounce of silver was $1.11, compared to a negative $1.67 in the prior year [8] Market Data and Key Metrics Changes - The company disclosed a potential production shortfall of 20% to 25% for the current quarter due to regulatory delays following a fatal accident [11] - The company is awaiting regulatory sign-off to resume production in certain closed areas [11] Company Strategy and Development Direction - The company is focused on building a larger and more diversified mining company, with ongoing projects at Aldomo and Condor [23] - Investments in ramp and tunnel development at Ying are aimed at enhancing underground access [12] - The company plans to complete a Preliminary Economic Assessment (PEA) for the Condor gold project by year-end [14] Management's Comments on Operating Environment and Future Outlook - Management expressed commitment to safety and is implementing changes based on recommendations from a government investigation following a fatal accident [10][12] - The company is cautious about the potential impact of the production shortfall on future guidance [19] - Management indicated that adjustments to mine plans will be made for the current quarter and the rest of the year [19][34] Other Important Information - The company invested over $18 million in operations in China and $7.6 million in Ecuador during the quarter [6] - A lawsuit seeking to void the environmental license for the Al Domo project was dismissed by the local court [14] Q&A Session Summary Question: Is Silver Corp continuing to work with the contractor involved in the incident at Ying? - The contractor will continue to be used at various locations, but the individual responsible has been dismissed [18] Question: Will there be an increase in cash costs due to the production shortfall? - It is too early to determine the exact impact on cash costs, but adjustments to mine plans will be made [19] Question: What percentage of overall operating costs are fixed at Ying? - The company needs to revisit the analysis as it has been a while since it was last conducted [20] Question: Will the Kupangyang mine be consolidated under Ying? - Kupangyang is a separate mining operation but will contribute to overall corporate production [21] Question: What can be done to close the valuation gap with peers? - The company is focused on building a diversified mining company, which should help close the gap over time [23] Question: What is the current status of construction at Al Domo? - Construction is progressing well, with expectations for a significant ramp-up in tons moved starting in August [30] Question: When will the company draw down on the stream proceeds? - The company anticipates drawing down towards the end of the current quarter or early next quarter [32] Question: Is the company still comfortable with its production guidance? - It is too early to address guidance adjustments, and the company will assess the true impact of production issues [34]